With the publication in the press of Wal-Mart’s unprecedented initiative to track, rank and index the sustainability of the products it sells, it is important to analyze the benefits and risks associated with such a program. It should be said upfront that this program carries with it the potential to dramatically improve, from a sustainability perspective, consumer behavior in America At the same time, the program also carries within it potentially dangerous pitfalls and ambiguities that sustainable advocates will need to pay attention to.
First a bit about the program itself via the Wall Street Journal (sub. required)
Wal-Mart Stores Inc. unveiled an environmental labeling program for the products it carries, in a step that could redefine the design and makeup of consumer goods sold around the globe but also boost costs for suppliers and customers.
Wal-Mart Thursday will tell suppliers they must calculate and disclose the full environmental costs of making their products, then allow Wal-Mart to distill the information into a rating system that shoppers will see alongside prices for everything from T-shirts to televisions.
The world’s largest retailer by revenue, once disparaged by environmental groups, said the new initiative represents a bold new step in its efforts to reduce energy consumption, cut waste and introduce sustainable products. It will take years to fully take form. Some of its earlier efforts have had wide-ranging impact — from selling more than 100 million low-energy fluorescent bulbs to the creation of concentrated detergents that use less packaging and water.
Let us examine the benefits of this program. As the article points out, this initiative has the potential to “reduce energy consumption, cut waste and introduce sustainable products.” This is a laudable goal, no matter who is doing it, or why.
Secondly, American consumers are becoming increasingly conscious of the environmental impact of the products they buy. By launching this sustainability index, a standard that Wal-Mart hopes will become widely adopted, even by its rivals, Wal-Mart is catering to their customers wishes. This kind of responsive behavior is laudable, even from a company with less than stellar credentials on their own environmental impact. The fact that Wal-Mart means many different things to many different people should not stop us from acknowledging when a company operates with the kind of open-source and transparent practices that I believe will be hallmarks of successful companies in the 21st century.
Thirdly, and the issue with the potential for the most cultural resonance, is that with the introduction of this sustainability index, Wal-Mart will be forcing consumers to confront issues that we have avoided for too long. We in the sustainable movement cannot lament the fact that more people are not as frustrated by the pace of progress on sustainability in America, and then cast off every initiative such as this as mere corporate positioning. The fact is, this initiative, because of the singular importance and influence of the company launching it, is an extremely important step in pushing the conversation forward.
If there is any chance to penetrate deeper into the lexicon of mainstream America with phrases like sustainability, carbon imprint, miles traveled, natural resources used, humanely-raised, fair trade, etc…than we have to learn to accept small victories graciously and then redouble our efforts. Would we rather people use a word like sustainable incorrectly, or not use the word at all? Without a doubt, this development by Wal-Mart is a victory. At the very least it is a small one with the potential to become a big one.
America wants leadership right now. Would it be very shocking to our sensibilities if a company such as Wal-Mart, with its checkered past and shoddy environmental record, re-emerged as a company that, having read the writing on the wall, jumped out ahead of a trend with the potential to reshape the retail industry for the next century? We cannot let perfect be the enemy of good.
With these positives in mind, it is crucial to remind ourselves on the limitations and potential drawbacks of Wal-Mart’s sustainability index.
Who Designed This Index?
It should be announced who has worked on this project, what their respective credentials are, and the full scope of the criteria used to determine the rankings on this sustainability index.
Will the American Consumer Pony Up?
The prices consumers pay, as the article deftly points out, will have to rise. In a time of economic recession and high unemployment, it remains to be seen whether the American consumer is willing to either pay more for the products they purchase, or simply consume less. Sustainable advocates believe that reducing consumption will be a necessary societal trade-off if we are to truly come to terms with a sustainable future. The attachment to an ideology of excess, speed and economy, are central features of the 20th Century business that has just detonated. Will the recession provide us with a “cultural reset” button to reconfigure our values?
Will The Program Undermine True Sustainability?
Will Wal-Mart’s sustainability index be just another step in the march to devalue words like sustainable and organic? If Wal-Mart jumps out ahead of the rest of the consumer goods industry, and any governmental mandates that may be in the works, do they get to define the debate going forward?
These are questions that we do not, as yet, know the answers to. And it will be the responsibility of sustainable advocates everywhere to keep the pressure on Wal-Mart to do more, to do it better, and to do it faster. But those questions should come from a place of hope, and with the knowledge that another battle has been won.
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Daniel Goleman's new book “Ecological Intelligence” discusses, in detail, the very system of ranking/indexing that WalMart will likely use. The existing database is huge and will get bigger — and lots of smart, interested people (with their hearts/minds in the right place) are creating it.
I wrote a series of blog entries about the historical implications/connections about this a few weeks ago. You can see it here.
thanks maureen, i'll be sure to read through them and comment over
there….maybe get a little back and forth happeniing
Z
In his new book, Daniel Goleman looks at the ongoing work by researchers/environmentalists/scientists around the world to construct the very kind of index/rating system that WalMart will likely use. He also presents a compelling argument about how and why this kind of index will likely prod consumers to “go green.”
A few weeks ago, I also wrote a series of blog entries about the historical implications/connections to consumer action and “revolution.” You can read it here.
Well, your comment system “ate” the first comment (by freezing my computer) — so I rewrote it, and then they both showed up! URGH! Sorry about that. Anyway, great post, Zachary (as always! You're da master of the food posts.)
I don't know about that! But I'll take the compliment anyway.
I think this is a huge development that would have been unthinkable even 2-3 years ago. Wal-mart deserves some serious credit for this. They also deserve quite a bit of credit for publicly endorsing health care reform, against the wishes of the National Retail Federation. Both are huge moves that point to just how smarter companies now see social responsibility as a key differentiator that directly translates into revenue.
But the real test here will be when Wal-Mart opens up enough so that we can tell what 'sustainable' means. From what they have indicated, the system seems to modeled after what The Good Guide folks are doing. Good Guide is blazing the seemingly complex trail right now to help establish what sustainable means in a consumer product but their methodology is complex, even confusing. They come up with this clear, traffic light system, pointing you in the right direction. Still their ratings are opaque and must be taken at face value.
Either one of these systems could emerge as the definitive system the entire retail ecosystem adopts but we are a long way from there. All of this is encouraging but it needs to bring smaller organizations, like family farms, to the table in a more substantive way.
The new website is very nice, keep up the good work.
John
thanks so much for your wonderful comment. I agree completely that there
remains a good deal of work to be done in particular ensuring that any
rating system can be understood by the average American consumer. Thanks so
much for the comment and for the compliment re: the blog.
Z
It sounds like a great plan, however I am highly suspicious of Walmart “greenwashing” us. They never provide local produce or meats, and the carbon footprint they leave is enormous, as so many of their products are from overseas. So, I'm a bit leary at this point, we'll see!
I think it is appropriate to be suspicious of this program, but open minded
enough that if the reality of it begins to do some real good, that one will
be able to acknowledge it. You are totally right in that Wal Mart dominates
through sacale and therefore local, regional production systems are nearly
worthless to them.
But we shall see and we will force them to improve this system once its in
place. This will educate consumers and that is where all great lasting
change begins
I enjoyed “Ecological Intelligence” and learned much from it. We need to be looking at these sustainability indices, but I am most in favor of a “cradle-to-cradle” system which encourages reuse of materials over the “cradle-to-grave” system which encourages waste. There is a segment of the population for whom only the bottom line matters ($). If implemented and hyped properly, a rating system like this could be the beginning of the education bottom-liners need into the importance of their consumer choices.
yepsustainability advocates persist in talking about education more than
anything else. This program will have the affect of raising the
consciousness level and educating consumers over time. This will lead, in
the hopeful scenario, to a more conscientious consumer who perhaps will
simple consume less, as they begin to become aware of the consequences of a
consumption based lifestyle.
There will absolutely be a certain segment of the population for whom the
bottom line is the guiding factor in decisions like this. We may just have
to accept this fact, and plan around it. If we can dramatically improve the
habits of the other 90 percent, then we can mediate this.
thanks for the comment
Z